One of the most shocking moments of my career was Apple's announcement that the iPad price would start at just $499. For a company like Apple, a price that low seemed downright cheap. Immediately, speculation began that Apple was taking huge losses on the low-end iPads in order to boost market-share and sell peripherals. Now iSuppli has put together an estimated list of iPad costs that paints a very different picture.
Don't Miss: See the first leaked Black Friday 2016 Ad
Don't Miss: Incredible Pokemon Gifts
The basic, 16 GB non-3G iPad costs a total of $229.35 to make. That means almost $270 in profit for every basic iPad sold. Apple isn't exactly 'taking a wash' on the low-end models. The best deals (for Apple) are the 32 GB and 64 GB 3G models, which each net over $400 in profit. Now those reports that Apple will cut iPad prices if sales are sluggish make a little more sense.